Won Declines Most in a Month After China Lowers Interest Rates
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South Korea’s won declined the most in a month amid concern China’s interest-rate cut will lead to more weakness in the yuan and other regional exchange rates.
The People’s Bank of China lowered its policy rate for a sixth time since November late on Friday. That followed data last week that showed gross domestic product in China, South Korea’s biggest export market, increased at the slowest pace in more than six years in the third quarter. The devaluation of the yuan on Aug. 11 sparked declines in Asian exchange rates and raised fears of a currency war.